SCOTT MENZIES ACCESS LTD

Executive Summary

SCOTT MENZIES ACCESS LTD is a newly established micro-entity displaying stable early financial health with positive net assets and working capital. However, extremely low cash reserves and heavy reliance on debtor payments pose liquidity risks that require proactive management. Strengthening cash flow through faster collections and maintaining robust credit control will be key to supporting sustainable growth and financial resilience.

SCOTT MENZIES ACCESS LTD - Analysis Report

Company Number: SC756116

Analysis Date: 2025-07-20 11:03 UTC

Financial Health Assessment for SCOTT MENZIES ACCESS LTD

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1. Financial Health Score: B-

Explanation:
SCOTT MENZIES ACCESS LTD shows a generally sound start-up financial position with positive net assets and working capital. However, the company is very new (incorporated in January 2023) and has limited operating history, minimal cash on hand, and significant amounts tied up in debtors. These factors suggest a cautiously positive but vulnerable financial health status, meriting a B- grade.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£8,339	Relatively low total current assets, primarily debtors, indicating limited liquidity flexibility.
Cash on Hand	£1	Critically low cash balance; a symptom of tight immediate cash flow and potential liquidity strain.
Debtors	£8,338	Majority of current assets are receivables, showing sales made on credit but cash not yet collected.
Current Liabilities	£3,571	Short-term obligations that are significantly less than current assets, indicating positive working capital.
Net Current Assets	£4,768	Positive working capital—good sign of ability to meet short-term debts, but depends on debtor collection.
Net Assets (Shareholders' Funds)	£4,768	Positive equity, showing initial capital and accumulated retained earnings from the first year.
Employees	1	Micro business size — very lean operation, typical for a start-up.
Profit & Loss Account	£4,767	Reflects retained earnings rather than losses; company is not reporting negative results.

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3. Diagnosis: What the Financial Data Reveals

SCOTT MENZIES ACCESS LTD is a newly incorporated micro-entity operating in a specialized segment of construction. The company’s financial "vital signs" suggest an early-stage enterprise with a stable but fragile financial condition:

• Healthy Working Capital: The company’s net current assets are positive (£4,768), meaning it has more short-term assets than liabilities—a critical sign of liquidity health.
• Symptom of Low Cash: Cash on hand is essentially zero (£1), which is a red flag for immediate cash availability. The company is highly dependent on the timely collection of its debtors (£8,338). If these receivables are delayed or uncollectible, the company could face cash flow distress.
• Limited Operating History: With only one employee and no detailed profit & loss disclosed, the company’s ongoing profitability and cash flow generation remain uncertain.
• Equity Position: Shareholders’ funds equal net assets, indicating no external debt—this is a strong balance sheet feature reducing financial risk.
• Compliance and Governance: The company is up-to-date with filings and has no overdue accounts or returns, demonstrating good administrative health.

Overall, the company is in a stable but precarious early growth phase, with liquidity dependent on managing receivables effectively.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Cash Reserves: Build up cash balances to avoid liquidity crunches. Negotiate quicker payment terms with customers or consider invoice financing to convert debtors into immediate cash.
• Tighten Credit Control: Actively manage debtor collections to reduce days sales outstanding (DSO). Establish clear credit policies and follow up rigorously on overdue payments.
• Maintain Positive Working Capital: Monitor current liabilities carefully, ensuring obligations are met without eroding cash flow.
• Build Profitability Metrics: While the company currently shows retained earnings, start tracking gross and net margins to understand business profitability and pricing effectiveness.
• Consider Business Insurance: Given the specialized construction sector, secure appropriate insurance to mitigate operational risks.
• Plan for Growth: As a micro company, consider strategic investments in marketing or equipment only once cash flow stabilizes.
• Monitor Financial Reporting: Continue timely filings and consider moving to full accounts as the company grows to improve transparency and stakeholder confidence.

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